Renewable Energy Communities: An Alternative Electricity Generation Financing via Regional Public-Private Partnership in Morocco

Abstract

Regional public-private partnership is a joint venture-based business model by way of musharakah contract in order to enable interest-free electricity generation financing within renewable energy communities each region in Morocco. Musharakah contract is a kind of Islamic finance instrument. Musharakah joint venture is well suited to renewable energy community business models because it is based on capital partnership within profit/loss participation. Renewable energy has played significant role in the world in recent times. Morocco has also got weight to renewable energy sources since when Moroccan authorities extensively tackled with enhancing energy supply diversification at National Energy Strategy in 2009. In this context, it is aimed in this study that provide more clean electricity generation and all economic factors are active in cooperation, especially households, through regional renewable energy communities. Therefore, regional industry and household electricity consumers are expected to become investors by evaluating their savings without interest thanks to musharakah contract.